Chapter 1 Introduction to Business

Question 1

What and who is the social arrangement made of?

Answer 1

Individiuals together for a purpose

Question 2

What is the collective goal of the social arrangement?

Answer 2

To work towards the organisations objective

Question 3

How can the performance be controlled to achieve the goal?

Answer 3

Performance is measured and relevant action is taken

Question 4

What are the boundaries for the orgnisation distinquishing from its envirionment

Answer 4

Physical (buildings, fences)

social (code of conduct, ethics, principles and cultures)

Question 5

What are the difference between each organisation?

Answer 5

Size, ownership, legal status, activties, access to finance, technology

Question 6

Which organisations are orientated to makeing profit and what are the primary objective?

Answer 6

Objective: maxmise owner wealth through

• sole traders
• partnerships
• Ltd
• Plc

Question 7

which organisations are orientated for non profit and what are the primary objective

Answer 7

Objective: maximise benefits of the beneficary

• public sector
• charities
• clubs and assocations
• Prof. bodies
• trade unions

Question 8

What is the mission?

Answer 8

General type of objective; an expression of raison d’etre (reason for existence)

Question 9

What is the mission statement what should a successful one contain?

Answer 9

Written communcation of mission to internal and external stakeholders

• purpose - why exist and what we are to deliver to stakeholders
• strategy - the rescources, competencies and generic strategy
• policies - standards and behavioural patterns adopted to the org.
• values - beliefts the managers and employees share

Question 10

What is the structure of the mission?

Answer 10

Why org exist?
The vision for future of the org.
Aims
Objectives
Plans 
Standards and targets

Question 11

What does the acronym SMART stand for and what does each letter stand for?

Answer 11

Specific - clear and easy to understand statement
measureable - success or failure can be quantified
achievable - pointless setting unachievable objetives
relevant - appropriate to mission and stateholders
timed - timed period to achieve

Question 12

Once understood for NNFP and NFP primary objectives what are the secondary objectives?

Answer 12

Market standing
Innovation
Productivity
Staff development
Corporate responbility

Question 13

What other strategies can be done aside to profit maximisation?

Answer 13

Profit sacrificing - satisfactory profits

revenue maximations - fous on increasing sales rather then profit

Question 14

What does plans outline for a business?

Answer 14

the action that should be taken to achieve operational objectives?

Question 15

What are the standards and targets for org.? give example

Answer 15

The desired level of performance e.g.

• physical standards (kg of resources used per product
• cost standards (cost per kg bought)
• quality standards (no. of faulty products)

Question 16

What is a stakeholder and who can they be? Divided by primary and secondary

Answer 16

Anyone who has to do with the business
e.g.
primary
shareholders and owners

secondary
- management
employees 
customers 
suppliers
lenders
Govt. 
Society as whole 
Environment

Question 17

What is sustainability and business sustainability

Answer 17

To meet the needs of the present without comprimising the ability of the future generations meeting their needs then
busines sustainability is the extent of the business operation and how it interacts

Question 18

What is natural capital

Answer 18

geology soil, air, water, and living things. (factors used to live)

Question 19

What was outlined by the Un in 2015 for sustainable development

Answer 19

decent work and economic growth
industry, innovation and infrastructure
responsible consumption and production